Royal Mail bosses' 156% pay rise
The salary of directors at Royal Mail rose by 156 per cent last year, taking their total income to Pounds 2.2 million, it emerged yesterday.
Directors’ pay at the postal group, which reported losses of Pounds 197 million in the year just ended, included bonuses worth Pounds 619,848. In the preceding year, boardroom pay totalled Pounds 873,439 after the company reported an operating loss of Pounds 318 million.
John Roberts, the chief executive who departed from the group in December 2002, was the biggest earner, pocketing Pounds 729,596, including a pension payment of Pounds 225,0852.
Mr Roberts received six months’ pay in lieu of notice, a payment for loss of office equivalent to six months’ salary and a bonus of Pounds 80,200.
He will also receive a pension pot worth Pounds 3.5 million, which equates to an annual pension of Pounds 160,000, or two thirds of his final salary.
The revelation, which emerged from the Royal Mail report and accounts, is likely to plunge the organisation into fresh controversy over pay. Last year Mr Roberts and other directors were forced to back down from a planned 10 per cent pay rise amid outrage that the increase would coincide with 30,000 job cuts at the group.
Mr Roberts and the old guard of management were criticised for having allowed the organisation to fall into serious financial difficulties by failing to market the postal brands effectively and to exploit new opportunities.
He departed last year after Allan Leighton was appointed chairman. Mr Leighton received a bonus of Pounds 165,420, according to the annual report, on top of his basic salary of Pounds 20,000.
